BP p.l.c. (BP) AI Stock Analysis

• Market Cap: £65.63B
• Dividend Yield: 5.72%
• Average Volume (3M): 33.83M
• Price to Earnings (P/E): 162.9
• Beta (1Y): 1.07
• Revenue Growth: -9.96%
• EPS Growth: -92.38%
• Country: UK
• Employees: 100,500
• Sector: Energy
• Sector Strength: 56
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.11
• Shares Outstanding: 15,796,279,000
• 10 Day Avg. Volume: 23,536,798
• 30 Day Avg. Volume: 33,831,647
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £445.63
• Price Target Upside: 3.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 63 Neutral
• Price Target: 448.00p ▲(4.42% Upside)

BP's overall stock score is driven by strong earnings call performance and positive technical indicators. However, financial performance challenges and high valuation weigh down the score. The company's strategic initiatives and operational efficiency provide resilience, but liquidity and profitability issues need addressing.

Positive Factors

Financial Performance

BP's reported operating profit in the Gas & low carbon energy division was 19% above consensus, driven by stronger-than-expected gas marketing and trading results.

Shareholder Returns

BP announced a 4% increase in dividends per share, aligning with market expectations and indicating confidence in future financial performance.

Negative Factors

Execution Risk

Execution risk around asset disposals that are likely to dilute BP’s cash flows in numbers and quality.

Leverage Concerns

BP’s economic net debt (including hybrid bonds and leases) keeps climbing (up >$5bn YTD) to now equate to >65% of BP’s market cap.

Valuation Concerns

BP's valuation is not considered cheap as it trades at a relative PE re-rating higher than the sector average.

BP p.l.c. Business Overview & Revenue Model

Company Description

BP p.l.c. (British Petroleum) is a global energy company headquartered in London, United Kingdom. It operates in all areas of the oil and gas industry, including exploration, production, refining, distribution, and marketing. BP is also involved in renewable energy sources such as wind and solar power, reflecting its commitment to transitioning towards a more sustainable energy future. The company's core products include crude oil, natural gas, and various petrochemicals, with a strong presence in retail fuel stations and energy trading markets worldwide.

How the Company Makes Money

BP generates revenue primarily through the exploration and production of oil and natural gas, which constitutes a significant portion of its earnings. The company sells crude oil and natural gas to wholesalers and large consumers, while its refining operations convert crude oil into valuable petroleum products, generating additional income. Retail operations, including BP-branded gas stations, contribute to revenue through the sale of fuel and convenience store products. Additionally, BP has been expanding its investments in renewable energy, which, while currently a smaller revenue stream, is expected to grow as the demand for sustainable energy solutions increases. Strategic partnerships and joint ventures with other energy companies further enhance BP's capabilities and market reach, enabling it to optimize resource extraction and share operational costs.

BP p.l.c. Financial Statement Overview

Summary

BP's financial statements present a mixed picture. While the company demonstrates strong operational capabilities and a stable balance sheet, the net loss and slight revenue decline are areas of concern. The company shows resilience through positive cash flow generation and a manageable debt position, but must focus on improving profitability in a challenging market.

Income Statement

The income statement shows moderate performance for BP. Gross profit margin is healthy at approximately 15.43% for the TTM (Trailing-Twelve-Months), and the EBIT margin is about 8.40%, indicating decent operational efficiency. However, the net profit margin is negative due to a reported net loss, which is a concern. Revenue has dipped slightly from the previous year, indicating a challenging market environment.

Balance Sheet

BP's balance sheet reflects a stable equity position with a debt-to-equity ratio of 1.22 for the TTM, suggesting manageable leverage. The equity ratio is 20.69%, indicating a solid proportion of equity financing. Despite the decline in equity from previous years, the company maintains a strong asset base.

Cash Flow

The cash flow statement indicates positive free cash flow generation, albeit with a decline in free cash flow compared to prior periods. The operating cash flow to net income ratio is negative due to the net loss, but operating cash flow remains robust. BP's ability to generate substantial cash from operations is a positive indicator of liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	185.45B	185.23B	213.67B	240.86B	154.71B	112.38B
Gross Profit	29.99B	28.11B	47.39B	54.05B	21.65B	-534.61M
EBITDA	28.62B	25.11B	42.89B	29.37B	27.82B	-7.46B
Net Income	609.55M	382.83M	15.50B	-2.48B	7.42B	-21.54B
Balance Sheet
Total Assets	284.74B	282.23B	280.29B	288.12B	287.27B	267.65B
Cash, Cash Equivalents and Short-Term Investments	35.31B	34.52B	28.59B	29.77B	30.96B	29.53B
Total Debt	74.98B	71.55B	63.08B	55.49B	69.79B	81.93B
Total Liabilities	204.96B	203.91B	194.80B	205.13B	196.83B	182.09B
Stockholders Equity	59.24B	59.25B	70.28B	67.55B	75.46B	71.25B
Cash Flow
Free Cash Flow	8.59B	12.00B	17.75B	28.86B	12.72B	-144.00M
Operating Cash Flow	23.29B	27.30B	32.04B	40.93B	23.61B	12.16B
Investing Cash Flow	-12.18B	-13.25B	-14.87B	-13.71B	-5.69B	-7.86B
Financing Cash Flow	-10.93B	-7.30B	-13.36B	-28.02B	-18.08B	3.96B

BP p.l.c. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 429.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP, the sentiment is Positive. The current price of 429.05 is above the 20-day moving average (MA) of 415.05, above the 50-day MA of 395.18, and above the 200-day MA of 386.95, indicating a bullish trend. The MACD of 8.57 indicates Positive momentum. The RSI at 70.29 is Negative, neither overbought nor oversold. The STOCH value of 78.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BP.

BP p.l.c. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENOG	79 Outperform	£1.75B	11.83	17.50%	5.68%	-9.80%	-1.98%
SEPL	78 Outperform	£1.48B	13.41	7.92%	3.80%	118.04%	65.66%
SHEL	73 Outperform	£157.78B	15.58	7.54%	3.98%	-8.55%	-22.62%
HBR	71 Outperform	£3.86B	21.62	-11.32%	7.64%	123.03%	―
Sector *	65 Neutral	$15.26B	7.31	3.02%	5.32%	4.27%	-62.52%
BP	63 Neutral	£65.63B	162.87	0.82%	5.72%	-9.96%	-92.38%
ITH	61 Neutral	£3.65B	15.84	-7.04%	11.46%	31.96%	-159.27%